Updated March 27th, 2024 at 08:32 IST

Chinese TikTok sellers voice concerns over tightening of US rule enforcement

TikTok is now mandating that US entities registered by sellers must be majority-owned by US nationals.

Reported by: Business Desk
TikTok | Image:Freepik
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Chinese TikTok Sellers: Chinese e-commerce vendors eyeing TikTok Shop in the US as an alternative to Amazon express frustration over what they perceive as stricter enforcement of rules for overseas sellers on the platform.

Amid uncertainties surrounding the potential divestment or ban of Chinese-owned TikTok in the US, the platform has recently taken a firmer stance on enforcing its internal regulations, causing discontent among Chinese sellers and industry representatives.

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TikTok is now mandating that US entities registered by sellers must be majority-owned by US nationals, a move that affects many Chinese sellers who had previously utilised US entities to establish themselves as American merchants on the platform.

This shift in policy means that Chinese vendors will need to re-register as overseas sellers, leading to concerns about reduced visibility and support compared to their US counterparts, putting them at a disadvantage.

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While TikTok stresses its commitment to maintaining clear policies for all sellers, including international ones, Chinese vendors feel targeted and are contemplating scaling back their efforts on the platform or seeking US partnerships.

Some sellers have expressed frustration with the evolving nature of TikTok's rules, with one seller considering partnerships with local entities to navigate the changing landscape effectively.

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Despite TikTok's efforts to position itself as a viable alternative to Amazon for Chinese vendors, concerns over regulatory uncertainties and shifting policies have prompted reevaluation of strategies among Chinese sellers on the platform.

(With Reuters Inputs)

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Published March 27th, 2024 at 08:31 IST